In the fast-paced advertising world, agencies often rely on a whirlwind of short-term new business prospecting tactics, hoping for quick wins in client acquisition. However, a new business engine for agencies to enhance client prospecting, the right clients, is a nuanced, long-term endeavor that demands consistency, discipline, and a sound strategic approach. Forget the short-term Whac-A-Mole tactics; even the newest and flashiest fall short. If it has been too long since you won a new client, don’t just swat at flies. Consider the tried-and-true approach of building awareness, interest, and trust when the prospect is open to listening. That’s what I call a new business engine for agencies. Like all good marketing, it takes time, but that time is worth it because you will see more profitable and long-lasting client relationships.
Quick wins are often as disastrous for the client as the agency. “The last time we hired an agency, we found them through a cold email our product manager received. They ended up having little experience in our industry, and it was a complete disaster.” – Sarah Jones, SVP, Tech Startup.
The marketing funnel
A well-established framework for moving buyers to purchase and beyond. Some say the traditional funnel is obsolete. The proliferation of media, the availability of information, and the impact of culture and influencers bring buyers into a purchase process in various ways, not just from top-of-funnel to the bottom. Both are valid. No matter where your prospect is in the purchase journey, their behavior during that journey generally follows the funnel framework.
The steps along the way will deviate. Some creative search consultants try disruptive things to improve the process or lessen the barriers, but the funnel metaphor still holds. The point of all this is that agencies serious about client acquisition, that want more and better clients, have to do the hard work of synchronizing their efforts with the process and stages their prospects work through when searching for a new partner.
It’s worth noting that a small percentage of marketers (about 3%) are in the market and already down the funnel but will consider an agency late in the process. This is the segment that many agencies target because it’s easy: email blasts and dialing for dollars. I am sure you see the cheerleaders of this approach all over LinkedIn. The ones who promise 100 leads in your inbox every week. Agencies that want to avoid doing the things necessary to find the right kinds of clients, based on sound strategy and coordinated execution, are likely to be desperate and willing to bag anything that moves.
You have to be strategic and intentional and take a very different approach, a new business engine for agencies. They know the upfront investment of time and money to set up the proper framework will pay off. They want a steady pipeline of strategic opportunities that will get them to the next level of growth. This is more than just tactical. It starts with a well-crafted positioning and differentiation that sets the foundation and guides the strategy for all the other pieces of the process. I’ve shared more about this here and here.
Why is this year so important
2024 is shaping up to be the perfect storm for aggressive agencies. The primary triggers for new business are in full swing. The average length of an agency-client relationship has declined dramatically, from 7.2 years a decade ago to less than three years today. The average tenure of a CMO is the shortest in over a decade at 3.3 years. According to Winmo, almost 80% of marketing leaders change agencies within 12 months of being hired. According to industry analysts, marketing spending will be up significantly, too. More money, CMO turnover, agency changes, and the ideal environment to pick up new clients. But only if your agency has a well-tuned business development engine roaring.
What is a new business engine for agencies
Aggressive agencies don’t rely on cold outreach alone. Those who consistently generate new revenue do so through three or more channels. Surprisingly, each channel is roughly equal, and the activities of each complement the others like a force multiplier. I’ve shared more about this here and here.
Networking
The entire agency leadership should be active networkers staying in touch with professional friends, vendors, former clients, and employees. Each should continuously grow their LinkedIn and other social connections, targeting the kinds of professionals they want to work with. Referrals and recommendations from the network are usually the highest quality leads because the agency is already a known and trusted resource. The strategy is to ensure your network knows your agency, how it differs, and why it is a good resource for their connections. Networking with a strategy, plan, and accountability should be mandatory for all leadership.
Organic
Many agencies approach this informally and ad hoc. High-growth agencies develop account plans, strategies, and tactics with incentives and accountability. Leadership must take an active role in supporting front-line people with a new business mindset. Account teams should keep the agency top-of-mind by sharing new work, industry insights, and other content beyond the work done directly for them. The messaging should reinforce the agency’s positioning and differentiation and demonstrate why it could be a good resource beyond the current assignment or for their peers, colleagues, and connections. Do this delicately and in a non-sales way.
Cold prospecting
Arguably the hardest yet no less important in a comprehensive new business program. According to B2B research, roughly 3% to 5% of prospects are actively looking now. 10% to 20% are considering a change in the next six months. Another 20% to 30% are thinking about a change in the following six months. Approximately 45% have yet to make plans to change. While this data could be more precise, it helps guide a prospecting strategy.
Cast a wide net with increased frequency and benefit-oriented messaging to get the attention of the 3% to 5% actively looking. This will also help build awareness and familiarity among the longer-term segments. It’s hard to know what stage any specific brand is in. And many other factors motivate a search outside of these. Monitor your target list for agency and CMO changes, contract anniversaries, and other notable dates to signal the start of account-specific campaigns to take advantage of their triggers.
For longer-term prospects, six months out, 12 months out, consider the stages of the journey and align prospecting tactics with each, utilizing every possible channel to surround them with your brand. Use it to build a perception of an active, vibrant, and omnipresent agency. Think about a series of six messages that you align with the stages of the funnel and push out every week in an email, on LinkedIn, on your website, in the press, or whatever you have resources for. Repeat this series, updating the work, news, and thought leadership to keep a steady drumbeat that builds awareness, defines the agency, and gives reasons to consider it when the time is right.
Build your new business engine for agencies around:
Awareness
The prospect must know who the agency is and why they could be a good partner for the brand. Every click, every piece of content, becomes an opportunity to make a good impression.
Interest
This is where a strong brand identity comes into play. Ensure your website showcases your agency’s culture, values, and team. Highlight past successes with relevant case studies, focusing on industries and challenges that resonate with your target audience. Weave in value exchange and reciprocity by giving away ideas, analysis, unique insights, research report, and other things of value without salesy hype.
Fit
It’s time to delve deeper. Content demonstrating a deep understanding of their industry and marketing challenges will elevate your agency. White papers tackling industry trends, blog posts addressing pain points, or targeted webinars can significantly boost your positioning. Don’t underestimate the power of thought leadership. Share insights that go beyond generic marketing advice. Position yourselves as strategic partners, not just service providers.
Trust
The decision-maker wants reassurance: can this agency truly deliver on its promises? Client testimonials are powerful tools at this stage. Showcase success stories with clients facing similar challenges. Highlight awards and industry recognition. Be transparent about your process, timelines, and measurement strategies. The more confident you appear, the more trust you instill.
Consideration
At this point, the prospect transitions from covert to overt. She has narrowed the list to three or five and is ready to spend time with each. Your in and outbound prospecting changes to relationship building, and demonstrating expertise, confidence, and trust. It may be a call, chemistry meeting, RFI, RFP, or workshop. Whatever the interaction, this is the agency’s chance to showcase personality, culture, and strategic prowess.
It’s decision time, and the winner is…You
I’m sure the team pitched with passion and resolve. But that’s not all. Here’s where building solid relationships can pay off. Regular communication throughout the process, a demonstrated understanding of the brand’s needs, and genuine enthusiasm for a partnership can tip the scales in your favor.
In a recent pitch, the CMO summed it up perfectly. “We had two equally qualified agencies in the final round. Ultimately, the decision came down to gut feeling. The team at Agency X just felt more passionate and invested in our brand. We knew they’d be true partners, not just vendors.” – John Kim, CMO.
Wouldn’t you rather choose the new clients you want to build your business and reputation with? Playing Whac-A-Mole with whatever is out there will be painful, costly, and short-lived. Time to change. Time for a new business engine for agencies. By understanding the marketing decision-maker journey and strategically addressing their needs at each stage, your agencies can convert prospects into long-lasting, successful partnerships. Remember, it’s not just about acquiring new clients; it’s about nurturing relationships and building a loyal roster of satisfied partners.
Happy Prospecting
If you need help planning your new business engine for agencies, let’s schedule a call. I always enjoy talking about my favorite subject, agency growth. If you like this post, sign up for my new business newsletter. Let’s connect on LinkedIn to network, share resources, explore new ideas, or discuss the latest business development news. #LetsGrow!
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